Party City Holdco Inc.: going-concern / distress — Party City files Chapter 11 bankruptcy with $150M DIP and equity wipeout plan

Party City Holdco Inc.

Filed voluntary Chapter 11 petitions on Jan. 17, 2023; Debtors continue as debtors-in-possession.
Restructuring Support Agreement with noteholders: secured notes equitized; existing common stock canceled with no recovery.
DIP facility commitment of $150M from Consenting Noteholders subject to Bankruptcy Court approval.
CEO Bradley Weston gets amended employment through Dec. 2023 with $1M cash retention bonus payable after emergence.
Chapter 11 triggers defaults on $161.7M floating-rate notes, $750M 8.75% notes, $350M 6.125% notes, and $500M 6.625% notes.

item 1.01 item 1.03 item 2.04 item 5.02 item 7.01 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

Party City Holdco Inc. entered chapter 11 in United States Bankruptcy Court for the Southern District of Texas (petition 2023-01-17).

Proceeding: chapter 11
Court: United States Bankruptcy Court for the Southern District of Texas
Petition: 2023-01-17

Exact text from the filing

On January 17, 2023, Party City Holdco Inc. (the “Company”) and certain of its subsidiaries listed in Exhibit 99.1 (collectively, the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Party City Holdco Inc. entered into Restructuring Support Agreement with certain holders of Secured Notes (effective 2023-01-17).

Action: entry
Agreement: notes offering
Counterparty: certain holders of Secured Notes
Effective: 2023-01-17

Exact text from the filing

On January 17, 2023, the Debtors entered into a Restructuring Support Agreement (together with all exhibits and schedules thereto, the “RSA”) with certain holders (collectively, the “Consenting Noteholders”) of (a) Party City Holdings Inc.’s senior secured first lien floating rate notes due 2025 (the “Floating Rate Notes”)

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Source: SEC EDGAR

accession 0001193125-23-009847

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